Illumina Inc (ILMN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,504,000 | 4,584,000 | 4,526,000 | 3,239,000 | 3,543,000 |
| Receivables | US$ in thousands | 734,000 | 671,000 | 648,000 | 487,000 | 573,000 |
| Receivables turnover | 6.14 | 6.83 | 6.98 | 6.65 | 6.18 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,504,000K ÷ $734,000K
= 6.14
The receivables turnover ratio for Illumina Inc has shown a generally stable trend over the past five years. The ratio has ranged from 6.14 to 6.98 during this period, indicating that, on average, the company is able to convert its accounts receivable into cash approximately 6 to 7 times a year.
A higher receivables turnover ratio suggests that the company is efficiently collecting cash from its customers, which is a positive sign of effective credit and collection policies. In Illumina's case, the slight fluctuations in the ratio suggest a consistent performance in managing its accounts receivable.
Overall, the receivables turnover ratio of Illumina Inc reflects a healthy and efficient management of its accounts receivable, contributing to its liquidity and financial stability.
Peer comparison
Dec 31, 2023